why "¼ of the harvest is made into wine" was not considered?

Hello,

When calculating the estimation of the yield, I was confused why “¼ of the harvest is made into wine by the winery itself” in the original prompt was not considered?? Since only ¼ harvest of this 11ha field was made into wine, but in the solution, it seemed like all 11 ha was considered for wine making.

Thank you

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Top answer

Hagen

Coach

edited on Jan 29, 2023

Globally top-ranked MBB coach | >95% success rate | 9+ years consulting, interviewing and coaching experience

Hi Yushan,

I think this is an interesting question that may be relevant for many people. I would be happy to share my thoughts on it:

Your observation is likely correct, as reselling the grapes would likely result in a lower price compared to wine production.
Therefore, the calculation should have been divided into two parts, with 2.75 ha (i.e., ¼) allocated for wine production and 8.25 ha (i.e., ¾) allocated for reselling the grapes.

If you would like a more detailed discussion on how to address your specific situation, please don't hesitate to contact me directly.

Best,

Hagen

Pedro

Coach

on Jan 30, 2023

BAIN | EY-P | Most Senior Coach @ Preplounge | Former Principal | FIT & PEI Expert

The yield does not depend on how you allocate production. I.e., the yield of the field is exactly the same regardless of allocating 0%, 25% or 100% to wine.